BILL NUMBER: S8284A
SPONSOR: BASKIN
 
TITLE OF BILL:
An act to amend the executive law, in relation to the utilization of
minority and women-owned business enterprises, service-disabled veter-
an-owned businesses, small businesses and microbusinesses by private
businesses operating in buildings and other structures that were
constructed using state funding
 
PURPOSE:
This bill establishes Article 16-B of the Executive Law to ensure that
private businesses operating in buildings constructed with state fund-
ing, or on state-leased land, continue to meet post-construction diver-
sity, employment, and community benefit requirements. The bill mandates
the participation of minority and women-owned business enterprises
(MWBEs), service-disabled veteran-owned businesses (SDVOBs), small busi-
nesses, and microbusinesses in the operational and maintenance phases
post-construction, and promotes long-term economic equity through robust
compliance, reporting, and enforcement mechanisms.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 adds Article 16-B to the Executive Law:
*§ 340 Definitions: Establishes clear definitions for "minority-owned
business enterprise," "women-owned business enterprise," "certified
service-disabled veteran-owned business," "small business," "microbusi-
ness," "operating business," and "division," "board," and "minority
group member," along with "state investment."
*§ 341 State Division of Post-Construction Commitments and Compliance:
*Creates a division under Empire State Development to develop rules and
regulations for private businesses operating in state-funded buildings
or on state-leased land.
*Establishes utilization goals for MWBEs (15%), women-owned businesses
(15%), SDVOBs (6%), small businesses (10%), and microbusinesses (5%) for
operations and maintenance spending.
*Imposes a local hiring requirement: at least 25% of employees must
reside in disadvantaged zip codes (unless the business is unionized, in
which case union agreements apply).
*Requires payment of a living wage for employees.
*Creates a Community Grant Program, requiring grants equal to at least
5% of the state's construction investment to fund socioeconomic projects
in the municipality.
*Requires a data-driven community assessment and plan if the business is
within two miles of public land, following two public hearings.
*§ 342 Post-Construction Compliance Review Board:
*Establishes a five-member board appointed by the Governor and confirmed
by the Senate, with representation from major economic development
regions.
*Grades quarterly compliance efforts of operating businesses and over-
sees enforcement of community benefit agreements.
*Issues annual public reports detailing compliance.
*May waive certain regulatory requirements where a legally binding
community benefit agreement exists.
*§ 343 Penalties for Non-Compliance: Grants the division authority to:
*Withhold pending state funds;
*Bar non-compliant businesses and subsidiaries from receiving state
funds or tax incentives for five years;
*Collect liquidated damages proportional to the state's investment.
Section 2 sets the effective date as the 180th day after becoming law,
with immediate authority to promulgate necessary rules and regulations
in advance.
 
JUSTIFICATION:
This legislation addresses a significant gap in New York State's
contracting policies by ensuring that public investment continues to
generate inclusive economic benefits after construction ends. Too often,
commitments to MWBEs, SDVOBs, small and microbusinesses expire once
construction is complete. By establishing enforceable post-construction
goals, hiring standards, and a community grant program, this bill guar-
antees lasting support for disadvantaged communities.
The creation of a compliance division and review board will ensure tran-
sparency, accountability, and community engagement in the post-construc-
tion phase. This legislation promotes economic inclusion, uplifts small
enterprises, and ensures that state investments yield long-term value
for all New Yorkers.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become law. Effective immediately, the addition, amendment,
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized to be made and
completed on or before such date.